About Human Capital Management
Human capital consists of the “people assets” that drive an organization’s continuous development and sustained growth, and includes the collective attitudes, skills, abilities, and knowledge base of an entire workforce. Human capital management, also commonly referred to as human resource management or workforce management, is a vital discipline that combines technology systems with advanced methodologies to help businesses effectively build, manage, and maintain their “people” assets, and best leverage them to achieve and maintain a competitive advantage.
Key Benefits for Your Company
Human capital management solutions do so much more than just eliminate manual administrative procedures, increase the efficiency of human resources teams, and significantly minimize the costs associated with acquiring staff members and administering to all facets of their employment. Human capital management solutions provide businesses with the tools and technologies they need to improve all aspects of employee relationship management. As a result, they can boost satisfaction and morale, reduce turnover, and build a stronger, more motivated, and more loyal workforce.
Does My Company Need Human Capital Management Software?
Companies of all sizes, across all industries, have come to truly understand that their employee bases are their most valuable asset. Human capital management software can help companies hire the right employees, motivate them and manage all associated administrative tasks.
Common Human Capital Management Features
Human capital management solutions offer a powerful, feature-rich environment that provides full automation of and support for the following core human resources processes and activities:
- Planning and modeling: help businesses lay out the most efficient and effective organizational charts and chain-of-command structures and more clearly define roles and responsibilities across an enterprise.
- Recruiting and staffing: improves the way open positions are created, described, and managed, and provide businesses with the tools they need to find and attract the best possible candidates.
- On-boarding: facilitates and accelerates the procedures and tasks associated with setting up and acclimating new employees.
- Performance management: formalizes and streamlines review and appraisal processes, and keep track of employee performance records.
- Benefits and compensation administration: manage salaries, bonuses, health insurance, and other forms of compensation, while ensuring that payment packages are competitive and fair, and that incentive plans are compelling enough to keep staff members motivated.
- Time and attendance: helps track employee hours worked (both standard and overtime), and monitor the utilization and availability of vacation, sick, and personal days.
- Training and education: ensures that all employees are equipped with the knowledge they need to perform their jobs as productively as possible, and provide them with opportunities for professional growth and skills expansion.
What to Look for When Choosing a Human Capital Management Solution
What sets a world-class human capital management system apart from all the others on the market? Here are some of the key features to look for when evaluating and selecting your solution.
Every business, and the way it runs its human resources department, is unique. Therefore, the “one size fits all” approach to human capital management simply won’t work. Be sure to choose an application that can be custom-tailored to your HR-specific workflows and procedures.
Human capital management is about more than just automating administrative procedures. It’s about understanding those trends and patterns that impact a workforce, and using that insight to develop the most successful employee acquisition and retention strategies possible. Look for a solution that incorporates in-depth analytical capabilities, so critical metrics such as turnover rates and average length of service can be tracked, strengths and weaknesses in the employee base can be identified and corrected as needed, and return on recruitment and retention dollars can be accurately assessed.
Integration with Third-Party Payroll Systems
Many businesses today outsource the management of their payroll functions to third-party providers. If this is the case with your company, then the human capital management solution you choose must be able to seamlessly share data with those systems maintained by your payroll processing partner.